Submitted by Responsible_Tie_8124 t3_125v9zl in wallstreetbets
VisualMod t1_je61yky wrote
>The simple answer is that HSBC could buy SVB UK for £1 because they are a much larger and more powerful company. When two companies merge, the smaller company is almost always absorbed into the larger one. In this case, it made sense for HSBC to just pay a nominal fee to acquire SVB UK since they were already quite familiar with the business and knew that they could easily integrate it into their own operations.
Responsible_Tie_8124 OP t1_je62hx0 wrote
Thanks for ur answer. In a relating case, UBS paid over $3b for credit Suisse - was this because they weren't much different in their sizes?
My-Internet-Persona t1_je67o22 wrote
You are answering to an AI-powered account.
Responsible_Tie_8124 OP t1_je6hq44 wrote
Didn't know that (this was my first post)... but thanks for letting me know anyway
Viewing a single comment thread. View all comments